The fast-growing vehicle lighting market is an interesting investment for companies wanting to increase their business in the automotive sector. Our DVN study last year noted strong global growth for exterior lighting from €28bn in 2016 to €50bn by 2025.
And it’s not just expansion of the industry, but also some shape-shifting in the lighting segment, with some notable tectonic movement recently:
- At the end of last year, Koito sold all shares of Shanghai Koito to Huayu Automotive Systems, investigating the best development method and production structure for the Chinese market centered on their three existing companies, Guanzhou Koito Automotive Lamp, Hubei Koito Automotive Lamp, and Fuzhou Koito Tayih Automotive Lamp.
- This past April, LG Electronics bought ZKW Group for $1.3bn. This connection aims to bring ZKW, mainly a high-end vehicle supplier, to a more diversified clientele.
- Last month, Magna International paid $271m to acquire Olsa, an Italian lighting manufacturer. This agreement will give Magna new plants in Italy, Poland, Brazil, China, and Mexico.
- This month, Chinese auto supplier Rebo Lighting and Electronics bought Federal-Mogul’s lighting division.
I think this trend will not stop, and vehicle lighting will carry on providing interesting and sturdy investment prospects. Read about the Rebo buyout of Federal-Mogul in this week’s News.
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